Question: Suppose t T T T3, where t is the current time, and A > 0. Recall that Z(T1, T) is the price at time

Suppose t T T T3, where t is the current time, and

Suppose t T T T3, where t is the current time, and A > 0. Recall that Z(T1, T) is the price at time T of a ZCB with maturity T and F(T1, T2, T3) is the forward price at time T for a forward contract with maturity T on a ZCB with maturity T3. a) For each of the pairs of A and B in the table, choose the most appropriate relationship out of >, 0 and Z(t, T) = 0?

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